Still No Word on Volvo-Changan Deal
However, Changan representatives denied the reports and explained that the Chinese company has absolutely no interest in purchasing Volvo for the time being.
"I told the National Business reporter that there is a chance that Changan might consider cross-border merger and acquisition eventually. It wasn't meant for the Volvo deal specifically. Chinese automakers will become global players some day but we are not strong enough now to make major oversea acquisitions and turn around distressed assets," a Chinese executive who preferred to remain anonymous told Reuters.
Although it may sound a bit surprising that Ford wants to sell Volvo, market analysts see it as an obvious move, in the context of global economic crisis. Basically, massively-affected companies aim to sell non-profitable assets to more financially-stable firms that could revamp sales and keep the brands on or above the floating line.
Volvo announced earlier this day that approximately 4,000 employees will by let go by the end of the year due to the same reason which pushed global companies close to bankruptcy: the economic crisis. Explaining that this is only a move of the company's cost-cutting plan, Volvo officials admitted that overseas subsidiaries may take similar decisions in the near future.